Wireless chipmaker Qualcomm (NASDAQ: QCOM) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
Qualcomm beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $11.27 billion, up 10% year on year. It was an exceptional quarter for the company, with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.
Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Qualcomm’s revenue to grow 4.6% year on year to $12.21 billion, slowing from the 17.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qualcomm has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Qualcomm’s peers in the processors and graphics chips segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 8.4%, meeting analysts’ expectations, and Penguin Solutions reported flat revenue, topping estimates by 1.2%. Qorvo traded down 6.8% following the results while Penguin Solutions was also down 13.8%.
Read our full analysis of Qorvo’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 13.5% on average over the last month. Qualcomm is down 13.1% during the same time and is heading into earnings with an average analyst price target of $188.27 (compared to the current share price of $152.94).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
